'Fixed term workmen' will hit jobs for middle-aged: unions

The Labour department’s notification amending the Karnataka Industrial Employment (Standing Orders) Rules to reintroduce “fixed term workmen” will be a “blow to permanent employment and job security,” trade unions have cautioned.

According to trade unions, the amendment will indirectly empower industries to hire and fire labourers at will, and primarily affect middle-aged employees.

Management consultants have welcomed it, saying that employability will improve due to the measures introduced by the government.

Meenakshi Sundaram from Council of India Trade Unions told DH that the new amendments will end reliable job opportunities, especially for the youth.

“Factories will hire only a minimum number of regular workers and force middle-aged men out of jobs as employers prefer younger workforce. The spike in unemployment of middle-aged men will have broader social ramifications,” he said. Moreover, these employees cannot be part of a union, which reduce the collective bargain rights of labourers.

The amendment to Standing Orders to introduce “fixed term workman” (contracted for employment for a fixed period) was brought in during NDA rule under A B Vajpayee, and was withdrawn when the UPA came to power. “Despite stringent legislation, all labour laws are liberal in nature as no violators are punished. Further relaxation of labour laws will have repercussions on social balance. We will challenge this in court,” said
Sundaram.

Management consultant B C Prabhakar said that hiring fixed term workmen rather than contract labourers will be beneficial for companies as it will allow them to reduce excess staff, which is necessary for the survival of some companies.

“Their salaries will be on a par other employees along with all other benefits. Many employees do not want to work in a company permanently and this will help them,” he said. Noting that flexi-labour was a phenomenon all over the world, he said that the model will help improve employment as a whole.

The Standing Orders are applicable to establishments such as factories, plantations and mines which employ more than 50 workers. However, the central government has introduced a Bill which when enacted will allow such provisions to be introduced across all sectors - such as banking and others, sources said.

The government contemplated relaxation of labour laws to boost production impacted by the Covid-19 lockdown. One of the its recent circulars which increased working hours for factory workers was withdrawn after it drew flak from various quarters.